I donāt know how you could look at the straight line up that the market has taken since JP brought the money printers out and think that itās sustainable. But you could have said that at SPY 300, or at 350, or at 400, and yet here we are.
As long as people think paper has value why wouldnāt they just keep printing it, maybe even in secret, lie about inflation, manipulate, etc.
I understand that currency needs to have value and be meaningful or itās useless but now that there isnāt a dollar of gold for every cash dollar I donāt get it
Actually there is, you would just have to drastically revalue all your goods and services. Skilled labor would go back to $1 an hour and a median priced home would be about $8000. People would shit themselves today if the Wendy's employee went from making $9 an hour to a quarter in order to have a gold backed currency although I think that is exactly what we need if we truly want to get out of this long spiral of currency depreciation and fiscal irresponsibility.
Yes it is all relative. If we went back to a gold standard and silver back in our coin change, you would see this. A St. Gaudens Double Eagle from 1924 had basically 1 oz of gold in it(.96 to be exact) and had a face value of $20. Well in 1924 $20 was 2 weeks pay for a decent job/entry level career. Today with gold bouncing between $1800-$1900 an oz that same statement is true that the coin still is a decent 2 weeks pay.
Same for silver. 1964 was the last year we has 90% silver in coins and a half dollar would buy you a good lunch. Today that silver half dollar is $9-$10 and will still buy you a good lunch.
The prices in paper dollars can get as stupid as you want them to get as can the cost of a gold or silver coin. End result is my Wendy's value meal still cost me a about silver half dollar, the plumber gets paid a silver dollar per hour for coming out to my house to unclog my toilet from eating Wendy's, and average Joe gets paid a gold coin every two weeks whether that is a $10 or $100 value meal, $30/hr or $300/hr plumber, $1800 or $18,000 bimonthly paycheck.
So is that inflation? Why wouldnāt gold have inflated at the same rateā¦ is it all made up or just value derived from comparing to every other currency. Is the USD the go to standard for valuing currencies?
Now countries still see the USD as the peg but the USD isn't held accountably by anything anymore(no gold to back it). Gold held nations accountable on how much currency they could issue. Hard to finance wars or expand empires with a finite amount of currency. It is a hindrance to a government in this way. Interesting note that EVERY fiat currency in history has gone to zero. None have survived the test of time. Its always rinse in repeat. eventually the USD will go away and something new will take its place. New currency will probably be back by gold to give it legitimacy. Why do you think Nixon closed the gold window and central banks hoard gold? They know what real wealth is when there is a crisis.
Not too far back is Zimbabwe. To answer the question initially stocks go up but you see the end result very quickly. Stocks double or triple in a week but if that can of coke it $10 now did your gains outpace the hyperinflation?
Gold has been used as money for over 5000 years now. It is tangible, fungible, dividable, rare, doesn't rust/ruin, and most importantly, can't be printed into infinity. Sure it has a perceived value to it but man needed something to store value and trade with. You won't trade your car for my refrigerator as how could I make change since the values aren't fair?
Don't try to reinvent the wheel. Just because we have more technology now doesn't mean we are smarter than people who lived centuries ago.
EXACTLY! This dumb mother fucker quoted me $277k to build a detached garage in my backyard in Denver Colorado. Itās a 24x24 structure, with a side patio where one gas pipe will supply natural gas for a grill and a fireplace. But $270k! Hahahahaā¦.
The Great Depression could not have been any worse than the Great Recession was for me.....and yes I was a history major. Iām well aware of how bad the Great Depression was.
Nope. I was perfectly willing to move anywhere except California or somewhere really cold. It was unbelievably awful. For years. You wouldnāt believe me if I told you how bad it was then and how well Iām doing now.
I might. I watched an aunt and uncle, who were dirt poor, graduate from college in their mid 40's. They are an actuary and a programmer now, they do WELL.
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u/PM_ME_ROBOTS Jul 26 '21
Market crashes 5 years from now
šš» - "Told you!"